Xtreme Green Electric Vehicles (XGEV) 10-Q 12 Aug 14 2014 Q2 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	6 Months Ended
	Jun. 30, 2014
Document and Entity Information	'
Entity Registrant Name	'XTREME GREEN ELECTRIC VEHICLES INC.
Document Type	'10-Q
Document Period End Date	30-Jun-14
Amendment Flag	'false
Entity Central Index Key	'0001392477
Current Fiscal Year End Date	'--12-31
Entity Common Stock, Shares Outstanding	40,995,000
Entity Filer Category	'Smaller Reporting Company
Entity Current Reporting Status	'Yes
Entity Voluntary Filers	'No
Entity Well-known Seasoned Issuer	'No
Document Fiscal Year Focus	'2014
Document Fiscal Period Focus	'Q2

XTREME_GREEN_ELECTRIC_VEHICLES

XTREME GREEN ELECTRIC VEHICLESINC.- Condensed Consolidated Balance Sheets (USD $)	Jun. 30, 2014		Dec. 31, 2013
Current Assets:	'		'
Cash	$173,257		$261,436
Accounts receivable	30,476	[1]	87,316	[1]
Inventory	499,176		408,287
Other current assets	138,392	[2]	122,423	[2]
Total current assets	841,301		879,462
Property and equipment, net	313,246		162,953
Other assets	100,000		100,000
TOTAL ASSETS	1,254,547		1,142,415
Current liabilities:	'		'
Accounts payable and accrued expenses	140,710		883,985
Accrued expenses- related parties	'		704,580
Accrued interest	'		115,520
Accrued interest-related parties	'		284,894
Convertible debt- related party, net of discount	'		3,513,500
Convertible debt- other, net of discount	'		71,303
Customer deposits	'		367,900
Current portion of long-term debt	41,825		242,190
Stockholder loans	'		374,587
Total current liabilities	182,535		6,558,459
Deferred rent	23,419		25,778
Note payable	102,747		'
Extended warranty reserve	20,579		3,976
Total liabilities	329,280		6,588,213
Stockholders' equity (deficit):	'		'
Common stock	'	[3]	4,846	[3]
Common stock payable	40,995		'
Additional paid-in capital	12,717,427		5,871,900
Accumulated deficit	-11,833,155		-11,322,544
Total stockholders' equity (deficit)	925,267		-5,445,798
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)	$1,254,547		$1,142,415
[1]	Net of allowance of $1,604
[2]	Note 6
[3]	$0.001 par value, 100,000,000 shares authorized; 40,995,000 and 48,463,370 shares issued and outstanding

Statement_of_Financial_Positio

Statement of Financial Position - Parenthetical (USD $)	Jun. 30, 2014	Dec. 31, 2013
Statement of Financial Position	'	'
Common Stock, Par Value	$0.00	$0.00
Common Stock, Shares Authorized	100,000,000	100,000,000
Common Stock, Shares Issued	40,995,000	48,463,370
Common Stock, Shares Outstanding	40,995,000	48,463,370

XTREME_GREEN_ELECTRIC_VEHICLES1

XTREME GREEN ELECTRIC VEHICLES INC. Condensed Consolidated Statements of Operations (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Income Statement	'	'	'	'
Sales, net	$204,945	'	$547,676	$31,709
Cost of sales	295,397	'	650,809	5,167
Gross margin (loss)	-90,452	'	-103,133	26,542
Costs and expenses:	'	'	'	'
General and administrative	371,832	37,680	759,328	176,383
Sales and marketing	88,839	1,500	162,023	1,500
Gain from equipment sales	'	-9,379	'	-9,379
Interest expense	1,987	80,579	15,385	154,262
Total costs and expenses	462,658	110,380	936,736	322,766
Net loss from operations	-553,110	-110,380	-1,039,869	-296,224
Gain realized from Chapter 11 Reorganization	'	'	571,578	'
Expenses and fees related to Chapter 11 filing	-42,316	'	-42,316	'
Net loss before provision for income taxes	-595,426	-110,380	-510,607	-296,224
Provision for income taxes	'	'	'	'
Net Loss	($595,426)	($110,380)	($510,607)	($296,224)
Per share information - basic and diluted:	'	'	'	'
Loss per common share	($0.01)	$0	($0.01)	($0.01)
Weighted average common shares outstanding	40,840,934	48,463,370	45,885,897	48,463,370

XTREME_GREEN_ELECTRIC_VEHICLES2

XTREME GREEN ELECTRIC VEHICLES, INC. - Consolidated Statements of Cash Flows (USD $)	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Cash flows from operating activities:	'	'
Net Loss	($510,607)	($296,224)
Adjustments to reconcile net loss to net cash provided by operating activities:	'	'
Stock-based compensation	'	30,952
Depreciation	40,541	26,496
Accretion of discount on convertible debts	'	5,546
Gain on sale of property	'	-9,379
Gain realized from Chapter 11 Reorganization	-571,578	'
Changes in operating assets and liabilities:	'	'
Decrease in accounts receivable	56,842	'
(Increase) decrease in inventory	-92,132	4,904
(Increase) decrease in other current assets	-15,971	13,748
(Decrease) increase accounts payable and accrued expenses	203,139	128,170
(Decrease) in accrued expense - related party	-50,279	-71,790
(Decrease) in accrued interest - related party	-22,869	143,985
(Decrease)in warranty reserve	-9,564	'
Increase in extended warranty	16,603	2,500
(Decrease) in customer deposits	-38,975	-17,999
Net Cash Provided by Operating Activities	-994,850	-39,091
Cash Flows From Investing Activities:	'	'
Proceds from sale of property and equipment	'	35,658
Purchases of property and equipment	-190,833	'
Net Cash Provided by Investing Activities	-190,833	35,658
Cash Flows From Financing Activities:	'	'
Proceeds from issuance of common stock	495,000	'
Proceeds from long-term debt	135,375	24,500
Proceeds from convertible debt - related party	500,000	'
Repayment of convertible debt	-15,371	'
Repayment of long-term debt	'	-27,559
Stockholders loans, net	-17,500	7,482
Net Cash Provided by Financing Activities	1,097,504	4,423
Net (decrease) in cash	-88,179	990
Cash - beginning of period	261,436	'
Cash - end of period	173,257	990
Supplemental Cash Flow Information	'	'
Cash paid for interest	15,385	'
Cash paid for income taxes	'	'
Non-cash financing and investing activities:	'	'
Accounts payable and accrued expenses exchanged for stock	515,391	'
Accrued expenses - related party exchanged for stock	654,301	'
Accrued interest - exchanged for stock	115,520	'
Accrued interest - related party exchanged for stock	262,035	'
Convertible debt - related party exchanged for stock	4,013,500	'
Convertible debt - other exchanged for stock	55,932	'
Costumer deposits exchanged for stock	70,356	'
Long-term debt exchanged for stock	137,750	'
Stockholder loans to be exchanged for stock	$354,991	'

1_Basis_of_Presentation

(1) Basis of Presentation	6 Months Ended
	Jun. 30, 2014
Notes	'
(1) Basis of Presentation	'
	(1)           Basis of Presentation
	The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles (GAAP) for interim financial information and Rule 8.03 of Regulation SX. They do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation have been included.
	The results of operations for the periods presented are not necessarily indicative of the results to be expected for the full year.  For further information, refer to the consolidated financial statements of the Company as of and for the year ended December 31, 2013, on Form 10-K, including notes thereto.

2_Chapter_11_Proceedings

(2) Chapter 11 Proceedings	6 Months Ended
	Jun. 30, 2014
Notes	'
(2) Chapter 11 Proceedings	'
	(2)           Chapter 11 Proceedings
	On August 22, 2013 (the Petition Date), Xtreme Green Products, Inc. (the “Company”) filed a voluntary petition (the “Chapter 11 Case”) for relief under Chapter 11 of the United States Bankruptcy Code (the “Bankruptcy Code”) in the United States Bankruptcy Court for the District of Nevada (the “Bankruptcy Court”). The Chapter 11 Case was administered under Case No. BK-S-13-17266-MKN.
	On January 29, 2014 (the “Confirmation Date”), the Bankruptcy court entered an Order Confirming the company’s First Amended Plan of reorganization (the “Plan”) under Chapter 11 of the Bankruptcy Code. The Bankruptcy Court ordered the Chapter 11 closed as of February 28, 2014.

3_Earnings_Per_Share

(3) Earnings Per Share	6 Months Ended
	Jun. 30, 2014
Notes	'
(3) Earnings Per Share	'
	(3)           Earnings per Share
	The Company calculates net income (loss) per share as required by Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 260, "Earnings per Share." Basic earnings” (loss) per share is calculated by dividing net income (loss) by the weighted average number of common shares outstanding for the period. Diluted earnings (loss) per share are calculated by dividing net income (loss) by the weighted average number of common shares and dilutive common stock equivalents outstanding.

4_Basis_of_Reporting

(4) Basis of Reporting	6 Months Ended
	Jun. 30, 2014
Notes	'
(4) Basis of Reporting	'
	(4)           Basis of Reporting
	The Company’s financial statements have been prepared in accordance with Financial Accounting Standards Board (FASB), Accounting standards codification (ASC) Topic 852, “Reorganizations”, which requires that financial statements for periods subsequent to the Chapter 11 bankruptcy proceedings distinguish transactions and events that are directly associated with the reorganization from the ongoing operations of the company’s business. Accordingly, certain income, expenses, realized gains and losses and provisions for losses that were realized or incurred in the Chapter 11 bankruptcy are recorded as reorganization items on our statement of operations.
	On February 28, 2014, the effective date of the emergence from bankruptcy, we did not meet the requirements under ASC Topic 852 to adopt fresh start accounting. Fresh start accounting requires the debtor to use current fair values in its balance sheet for both assets and liabilities and to eliminate all prior earnings or deficits. The two requirements to fresh start accounting are:
	·         The organization value of the debtor’s assets immediately before the date of confirmation of the plan or reorganization is less than the total of all post-petition liabilities and allowed claims; and
	·         The holders of existing voting shares immediately before confirmation of the plan of reorganization receive less than 50% of the voting shares upon emergence.
	These requirements are referred to as the “fresh start applicability test”.  At February 28, 2014, our fresh start calculation indicated that we did not meet the requirements to adopt fresh start accounting because the reorganization value of the company’s assets exceeded the total of post-petition liabilities and allowed claims and the holders of existing voting shares immediately before confirmation of the plan of reorganization received more than 50% of the voting shares upon emergence.
	The Company incurred net losses from inception through June 30, 2014; aggregating $11,833,155 and has working capital and stockholder equity of $658,766 and $925,267 at June 30, 2014.
	The Company’s ability to continue as a going concern is contingent upon its ability to secure additional financing, increase ownership equity and develop profitable operations. In addition, the Company’s ability to continue as a going concern must be considered in light of the problems, expenses and complications frequently encountered by entrance into established markets and the competitive environment in which the Company operates.
	The Company is actively pursuing financing for its operations and seeking additional private investments. In addition, the Company is seeking to expand its revenue base and product distribution. Failure to secure such financing or to raise additional equity capital and to expand its revenue base may result in the Company depleting its available funds and not being able pay its obligations.
	The financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the possible inability of the Company to continue as a going concern.

5_Inventory

(5) Inventory	6 Months Ended
	Jun. 30, 2014
Notes	'
(5) Inventory	'
	(5)           Inventory
	Inventory is principally determined by using the average cost method that approximates the First-In, First-Out (FIFO) method of accounting for inventory. Inventory consists of finished vehicles, vehicles in process, and parts. The Company’s management monitors the inventory for excess and obsolete items and makes necessary valuation adjustments when required.

6_Other_Current_Assets

(6) Other Current Assets	6 Months Ended
	Jun. 30, 2014
Notes	'
(6) Other Current Assets	'
	(6)           Other Current Assets
		30-Jun-14	31-Dec-13
	Prepaid Trade Shows	63,978	-
	Prepaid inventory	$                    29,460	$                41,461
	Prepaid insurance	37,366	49,802
	Prepaid rent	2,463	-
	Other prepaid expenses	5,125	31,160
	TOTAL	$                  138,392	$              122,423

7_Stock_Holder_Loans

(7) Stock Holder Loans	6 Months Ended
	Jun. 30, 2014
Notes	'
(7) Stock Holder Loans	'
	(7)           Stock Holder Loans
	Under the terms of the Plan, all stockholder loans and other unsecured debt obligations that were previously reported on the Company’s financial statements were converted into equity on the Confirmation Date. As a result, no such loans remained outstanding on June 30, 2014.
	The following table summarizes the components of liabilities subject to compromise. The Bankruptcy Court ordered the Chapter 11 closed as of February 28, 2014 and all liabilities subject to compromise were extinguished.
	Accounts payable & accrued liabilities	$     817,319
	Accrued expenses - related party	630,763
	Accrued interest – related party	262,025
	Customer deposits	211,116
	Convertible debt & shareholder loans	4,222,553
	Stockholder loans	354,991
	Total liabilities subject to compromise	$  6,498,767
	Liabilities subject to compromise refers to prepetition obligations which were impacted by the Chapter 11 reorganization process. These amounts represent the debtors’ prepetition obligations that were resolved in connection with the Chapter 11 Bankruptcy Case. Substantially nearly all of the company’s debt has been classified as liabilities subject to compromise.

8_Line_of_Credit

(8) Line of Credit	6 Months Ended
	Jun. 30, 2014
Notes	'
(8) Line of Credit	'
	(8)           Line of Credit
	On April 21, 2012 the Company’s line of credit with a financial institution for $150,000 was converted to a term loan bearing interest at 6% per annum, maturing April 21, 2016. The line is secured by certain assets of a related party.  The balance of the Company’s term loan in the amount of $81,670 was paid in full during the quarter ended June 30, 2014.

9_Stock_Options

(9) Stock Options	6 Months Ended
	Jun. 30, 2014
Notes	'
(9) Stock Options	'
	(9)           Stock Options
	The Company’s 2008 Incentive Stock Option Plan was terminated on February 28, 2014 under the terms of the Chapter 11 Plan. All options outstanding there under the plan were terminated as of that date.

10_Subsequent_Events

(10) Subsequent Events	6 Months Ended
	Jun. 30, 2014
Notes	'
(10) Subsequent Events	'
	(10)         Subsequent Events
	On July 25, 2014 the Company sold 75,000 shares of its Common Stock to a private investor at a purchase price of $1.00 per share. A total of $75,000 was received on that date.

6_Other_Current_Assets_Schedul

(6) Other Current Assets: Schedule of Other Current Assets (Tables)	6 Months Ended
	Jun. 30, 2014
Tables/Schedules	'
Schedule of Other Current Assets	'
		30-Jun-14	31-Dec-13
	Prepaid Trade Shows	63,978	-
	Prepaid inventory	$                    29,460	$                41,461
	Prepaid insurance	37,366	49,802
	Prepaid rent	2,463	-
	Other prepaid expenses	5,125	31,160
	TOTAL	$                  138,392	$              122,423

7_Stock_Holder_Loans_Schedule_

(7) Stock Holder Loans: Schedule of Debt (Tables)	6 Months Ended
	Jun. 30, 2014
Tables/Schedules	'
Schedule of Debt	'
	Accounts payable & accrued liabilities	$     817,319
	Accrued expenses - related party	630,763
	Accrued interest – related party	262,025
	Customer deposits	211,116
	Convertible debt & shareholder loans	4,222,553
	Stockholder loans	354,991
	Total liabilities subject to compromise	$  6,498,767

4_Basis_of_Reporting_Details

(4) Basis of Reporting (Details) (USD $)	85 Months Ended
	Jun. 30, 2014	Dec. 31, 2013
Details	'	'
Net Loss	$11,833,155	'
Other Additional Capital	658,766	'
Total stockholders' equity (deficit)	$925,267	($5,445,798)

6_Other_Current_Assets_Schedul1

(6) Other Current Assets: Schedule of Other Current Assets (Details) (USD $)	Jun. 30, 2014		Dec. 31, 2013
Details	'		'
Prepaid Expense, Current	$63,978		'
Inventory, Gross	29,460		41,461
Prepaid Insurance	37,366		49,802
Prepaid Rent	2,463		'
Other Prepaid Expense, Current	5,125		31,160
Other current assets	$138,392	[1]	$122,423	[1]
[1]	Note 6

7_Stock_Holder_Loans_Schedule_1

(7) Stock Holder Loans: Schedule of Debt (Details) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Accounts payable and accrued expenses	$140,710	$883,985
Accrued expenses- related parties	'	704,580
Accrued interest-related parties	'	284,894
Customer deposits	'	367,900
Convertible debt- other, net of discount	'	71,303
Stockholder loans	'	374,587
Extinguished	'	'
Accounts payable and accrued expenses	817,319	'
Accrued expenses- related parties	630,763	'
Accrued interest-related parties	262,025	'
Customer deposits	211,116	'
Convertible debt- other, net of discount	4,222,553	'
Stockholder loans	354,991	'
Liabilities Subject to Compromise, Accounts Payable and Accrued Liabilities	$6,498,767	'

8_Line_of_Credit_Details

(8) Line of Credit (Details) (USD $)	Jun. 30, 2014	Apr. 21, 2012
Details	'	'
Long-term Line of Credit	'	$150,000
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate	'	6.00%
Loans Payable, Noncurrent	$81,670	'

10_Subsequent_Events_Details

(10) Subsequent Events (Details) (USD $)	Jul. 25, 2014	Jun. 30, 2014		Dec. 31, 2013
Details	'	'		'
Common Stock Shares Purchased	75,000	'		'
Common Stock, Par Value	$1	$0.00		$0.00
Common stock	$75,000	'	[1]	$4,846	[1]
[1]	$0.001 par value, 100,000,000 shares authorized; 40,995,000 and 48,463,370 shares issued and outstanding